1. Field of the Invention
The present invention relates to funding, and more particularly, to an interactive online funding method and system thereof.
2. Description of the Prior Art
A traditional approach to savings and loan funding is that a person saves money into a bank, the bank pays interest to the person, and then the bank lends the money to other borrowers. Furthermore, the bank receives a higher loan interest from the borrowers and earns the spread (i.e., the difference between the loaned interest earned and the deposited interest paid out). This aforementioned conventional approach is known as indirect financing.
On the other hand, in general, a rotating savings and credit association (“friendly society”) is another approach to savings and loan funding. The rotating savings and credit association responds to civil needs of microcredit, and is known as direct financing, which means the rotating savings and credit association does not mediate between lenders and borrowers. However, the lenders receive better interest rate from the rotating savings and credit association by undertaking higher risk.
In conclusion, there is a need to create a direct financing mechanism between lenders and borrowers to eliminate the intermediary spread between the lenders and borrowers, and to reduce the risk of default.